Highlights From the Biogen Earnings Call

Should You Buy Biogen Stock After the Company’s Earnings Report?

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Biogen’s earnings report for the third quarter of 2020 is out. The biotechnology company released its earnings ahead of the opening bell today. Here's a look at the highlights of Biogen's earnings report, and what it may say for its stock's outlook.

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Highlights From the Biogen Earnings Call
Source: Getty Images

Biogen's earnings report highlights

Biogen reported revenue of $3.4 billion, which was lower than its revenue of $3.6 billion a year ago but still topped analysts' estimate of $3.3 billion. Similarly, the company's EPS of $8.84 fell year-over-year from $9.17 but beat analysts' forecast of $8.05. Biogen is hosting a conference call to discuss the earnings results.

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What is Biogen’s stock price today?

Biogen stock popped up by 1.45 percent to $271 in premarket trading today ahead of the company’s earnings report. The stock fell 0.61 percent Tuesday to finish at $267.12 after trading at between $266.09 and $271.98. Biogen stock is down about 10 percent this year.

What is Biogen’s stock forecast?

Investors seeking bargain opportunities in the pharmaceutical industry may find Biogen stock appealing. Biogen currently trades about 30 percent below its 52-week high of $374.99. The most bullish analyst sees a 45 percent upside in Biogen stock to $386 in 12 months. On the other hand, the most bearish analyst sees a 15 percent downside in Biogen stock, to $228.

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Investors considering Biogen stock should be aware of the FDA's impending decision about the company’s application to market its Alzheimer’s disease drug candidate, aducanumab. I see Biogen stock surging if the FDA advisory committee recommends approval of the drug. Also, as Biogen has struggled over the years to bring aducanumab to market, investors aren’t expecting much from the FDA hearing on Nov. 6. Therefore, any pullback in Biogen stock after an FDA rejection would be limited. 

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Does Biogen pay dividends?

Biogen doesn’t currently pay dividends to its shareholders. Instead, the company prefers to put its profits into its business to drive growth. While Biogen may not fit the bill for investors seeking stocks with dividends, there are many pharmaceutical stocks that do, such as Pfizer. The company, whose stock has a dividend yield of more than 4.0 percent, plans to pay a quarterly cash dividend of $0.38 per share on Dec. 1. The dividend will be distributed to Pfizer shareholders on record as of Nov. 6.

Amgen and Johnson & Johnson are some other options. Amgen paid a quarterly cash dividend of $1.60 per share on Sept. 8 and has a dividend yield of 2.77 percent, and Johnson & Johnson paid a quarterly cash dividend of $1.01 per share on Sept. 8 and has a dividend yield of 2.79 percent.

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